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Is T. Rowe Price Mid-Cap Value (TRMCX) a Strong Mutual Fund Pick Right Now?
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Having trouble finding a Mutual Fund Equity Report fund? T. Rowe Price Mid-Cap Value (TRMCX - Free Report) is a potential starting point. TRMCX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
TRMCX finds itself in the T. Rowe Price family, based out of Baltimore, MD. T. Rowe Price Mid-Cap Value made its debut in June of 1996, and since then, TRMCX has accumulated about $4.19 billion in assets, per the most up-to-date date available. The fund is currently managed by Vincent DeAugustino who has been in charge of the fund since May of 2022.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 7.42%, and it sits in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 12.43%, which places it in the middle third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 15.43%, the standard deviation of TRMCX over the past three years is 19.95%. Looking at the past 5 years, the fund's standard deviation is 21.75% compared to the category average of 16.78%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 1.04, so investors should note that it is hypothetically more volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. TRMCX's 5-year performance has produced a negative alpha of -3.02, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Investigating the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is primarily on equities that are traded in the United States.
Right now, 87.91% of this mutual fund's holdings are stocks and it has 11.21% of assets in foreign securities. The fund has the heaviest exposure to the following market sectors:
Industrial Cyclical
Finance
Technology
Other
This fund's turnover is about 59.6%, so the fund managers are making fewer trades than its comparable peers.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, TRMCX is a no load fund. It has an expense ratio of 0.80% compared to the category average of 1.09%. Looking at the fund from a cost perspective, TRMCX is actually cheaper than its peers.
While the minimum initial investment for the product is $2,500, investors should also note that each subsequent investment needs to be at least $100.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, T. Rowe Price Mid-Cap Value ( TRMCX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, T. Rowe Price Mid-Cap Value ( TRMCX ) looks like a good potential choice for investors right now.
This could just be the start of your research on TRMCXin the Mutual Fund Equity Report category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.
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Is T. Rowe Price Mid-Cap Value (TRMCX) a Strong Mutual Fund Pick Right Now?
Having trouble finding a Mutual Fund Equity Report fund? T. Rowe Price Mid-Cap Value (TRMCX - Free Report) is a potential starting point. TRMCX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
TRMCX finds itself in the T. Rowe Price family, based out of Baltimore, MD. T. Rowe Price Mid-Cap Value made its debut in June of 1996, and since then, TRMCX has accumulated about $4.19 billion in assets, per the most up-to-date date available. The fund is currently managed by Vincent DeAugustino who has been in charge of the fund since May of 2022.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 7.42%, and it sits in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 12.43%, which places it in the middle third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 15.43%, the standard deviation of TRMCX over the past three years is 19.95%. Looking at the past 5 years, the fund's standard deviation is 21.75% compared to the category average of 16.78%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 1.04, so investors should note that it is hypothetically more volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. TRMCX's 5-year performance has produced a negative alpha of -3.02, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Investigating the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is primarily on equities that are traded in the United States.
Right now, 87.91% of this mutual fund's holdings are stocks and it has 11.21% of assets in foreign securities. The fund has the heaviest exposure to the following market sectors:
- Industrial Cyclical
- Finance
- Technology
- Other
This fund's turnover is about 59.6%, so the fund managers are making fewer trades than its comparable peers.Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, TRMCX is a no load fund. It has an expense ratio of 0.80% compared to the category average of 1.09%. Looking at the fund from a cost perspective, TRMCX is actually cheaper than its peers.
While the minimum initial investment for the product is $2,500, investors should also note that each subsequent investment needs to be at least $100.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, T. Rowe Price Mid-Cap Value ( TRMCX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, T. Rowe Price Mid-Cap Value ( TRMCX ) looks like a good potential choice for investors right now.
This could just be the start of your research on TRMCXin the Mutual Fund Equity Report category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.